Indian stock markets bounced back on Monday, ending their five-day losing streak after positive signals from the United States lifted investor confidence.
Market sentiment improved sharply after US Ambassador to India Sergio Gor said that the US and India would begin trade talks as early as Tuesday.
His statement triggered fresh buying across key sectors, helping the benchmark indices recover strongly from their day's lows.
The Sensex jumped nearly 1,100 points from its lowest level during the session. By the closing bell, the 30-share index settled at 83,878, gaining 302 points, or 0.36 per cent.
On the National Stock Exchange, the Nifty also showed a strong recovery. It rose from an intra-day low of 25,473.40 to touch a high of 25,813.15. The index finally closed at 25,790, up 107 points, or 0.42 per cent.
"While momentum indicators remain broadly bearish, the 100-day EMA (25,540–25,600) acted as a crucial support and helped initiate the bounce," an analyst said.
"Immediate resistance is placed at 25,800–25,870, which remains the next key hurdle," as per the market watcher.
However, the broader market remained under pressure. The Nifty MidCap index slipped marginally by 0.05 per cent, while the Nifty SmallCap index declined by 0.52 per cent.
On the economic front, investors are now focused on key upcoming events. The retail inflation data for December, based on the consumer price index, is scheduled to be released later in the evening.
Market participants are also closely watching the Union Budget, which will be presented on Sunday, February 1, 2026.
The commodities segment outperformed, supported by strength in metals, which benefited from renewed buying interest during supply constraints.
"Value buying was also evident in consumer and banking stocks, as investors sought opportunities after recent corrections, supported by expectations of stronger Q3 earnings and improving demand," the market watcher stated.
(With inputs from IANS)
